COMPLETING YOUR BUDGET

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Lesson Outcomes

Students should be able to identify expenses which are included in a budget.

Students will be able to prepare a simple household budget.

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Lesson Tasks

Review the breakdown of budget items

Complete a final monthly budget

Reflect of how to use a budget in the future

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BudgetsBudgets will include the categories of food, utilities, housing, transportation, medical/health, insurance, saving, debt, giving/charity, personal shopping, and entertainment.

• Which category/categories do you think will be most difficult for you to keep your spending within your budget?

• Which will be the easiest? Why?

• How might this change in the future?

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Budget BreakdownHousing (25-30%)

Utilities (5-10%)

Food (5-15%)

Transportation (10-15%)

Medical/Health (5-10%)

Insurance (10-25%)

Saving (10%)

Debt (5-10%)

Giving/Charity (10%)

Personal Shopping (5-10%)

Entertainment (5%)

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Description of Budget ItemsMedical/Health 5-10%: This includes co-pays, prescriptions, gym memberships, and other medical or health related costs.

Insurance 10-25%: (Includes health insurance)

Savings 10%: This is rather straightforward, but you may want to increase or decrease this based on other categories, or earmark your savings for a particular purpose.

Debt 5-10%: Hopefully you won’t have any debt to pay back. If you don’t, you can shift this 5-10% to another area or areas such as savings, housing, or transportation as needed.

Giving/Charity 10%: This may seem unnecessary to you now, but you may find that this aligns well to your personal vision or mission.

Personal Shopping 5-10%: Consider what you currently spend money on. How much do you spend a week? Now consider owning your own home, having children, caring for a pet, or renting an apartment. What additional expenses might you have?

Entertainment 5%: Think about how you might spend your time. What will you plan to do for fun at 18, 21, 30, 45, 60s and beyond?

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Changing Budgets

Your budget can change from month to month – it all depends on your monthly expenses

At the end of the month, if you budgeted correctly, your budget should equal 0. This means you have allocated all of your income.

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Final Monthly BudgetCalculate your spending allowance for each category based on future salary on the Final Monthly Budget.

Investigate areas of your budget so that you better understand what the categories will mean for you.

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Self-sufficiency

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In order to maintain self-sufficiency and stay within your budget, the average family may need to have the following annual incomes.

Review

What should be the ending balance of your monthly budget?

What can cause a change in your budget?

What is the most important part of the budgeting process?

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ReviewWhat should be the ending balance of your monthly budget?

$ 0.00 What can cause a change in your budget?

Changing monthly expenses

What is the most important part of the budgeting process?

Knowing where your money is going

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Complete the Lesson…

Complete the Managing My Cash Flow Reflection

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